ASX:NST

Stock Analysis Report

Northern Star Resources

Executive Summary

Northern Star Resources Limited engages in the exploration, development, mining, processing, and sale of gold deposits in Australia.

Snowflake

Fundamentals

Flawless balance sheet with high growth potential.


Similar Companies

Share Price & News

How has Northern Star Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NST's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.5%

NST

-2.4%

AU Metals and Mining

0.4%

AU Market


1 Year Return

11.2%

NST

15.5%

AU Metals and Mining

14.8%

AU Market

Return vs Industry: NST underperformed the Australian Metals and Mining industry which returned 15.5% over the past year.

Return vs Market: NST underperformed the Australian Market which returned 14.8% over the past year.


Shareholder returns

NSTIndustryMarket
7 Day-4.5%-2.4%0.4%
30 Day-19.1%-0.8%0.4%
90 Day-24.4%-2.0%4.6%
1 Year12.8%11.2%24.0%15.5%21.4%14.8%
3 Year159.3%147.6%59.3%39.1%40.2%21.4%
5 Year767.8%690.6%80.0%37.1%54.5%19.5%

Price Volatility Vs. Market

How volatile is Northern Star Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Northern Star Resources undervalued compared to its fair value and its price relative to the market?

45.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NST (A$9.21) is trading below our estimate of fair value (A$16.96)

Significantly Below Fair Value: NST is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NST is poor value based on its PE Ratio (37.8x) compared to the Metals and Mining industry average (13.1x).

PE vs Market: NST is poor value based on its PE Ratio (37.8x) compared to the Australian market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: NST is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: NST is overvalued based on its PB Ratio (5.3x) compared to the AU Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Northern Star Resources forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

25.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NST's forecast earnings growth (25.2% per year) is above the savings rate (2.3%).

Earnings vs Market: NST's earnings (25.2% per year) are forecast to grow faster than the Australian market (9.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NST's revenue (11.1% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: NST's revenue (11.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NST's Return on Equity is forecast to be high in 3 years time (25.4%)


Next Steps

Past Performance

How has Northern Star Resources performed over the past 5 years?

21.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NST has a high level of non-cash earnings.

Growing Profit Margin: NST's current net profit margins (11%) are lower than last year (20.1%).


Past Earnings Growth Analysis

Earnings Trend: NST's earnings have grown significantly by 21.5% per year over the past 5 years.

Accelerating Growth: NST's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NST had negative earnings growth (-20.3%) over the past year, making it difficult to compare to the Metals and Mining industry average (7.8%).


Return on Equity

High ROE: NST's Return on Equity (13.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Northern Star Resources's financial position?


Financial Position Analysis

Short Term Liabilities: NST's short term assets (A$453.8M) exceeds its short term liabilities (A$218.5M)

Long Term Liabilities: NST's short term assets (453.8M) exceeds its long term liabilities (310.4M)


Debt to Equity History and Analysis

Debt Level: NST is debt free.

Reducing Debt: NST has no debt compared to 5 years ago when its debt to equity ratio was 0.2%.

Debt Coverage: NST has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: NST has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: NST has a high level of physical assets or inventory.

Debt Coverage by Assets: NST's debt is covered by short term assets (assets are 6.3870331390345E+16x debt).


Next Steps

Dividend

What is Northern Star Resources's current dividend yield, its reliability and sustainability?

1.63%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%2.4%markettop25%5.6%industryaverage4.7%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: NST's dividend (1.63%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.35%).

High Dividend: NST's dividend (1.63%) is low compared to the top 25% of dividend payers in the Australian market (5.62%).


Stability and Growth of Payments

Stable Dividend: NST has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: NST's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.4%), NST's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NST's dividends in 3 years are forecast to be well covered by earnings (23.3% payout ratio).


Next Steps

Management

What is the CEO of Northern Star Resources's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Stuart Tonkin (43yo)

3yrs

Tenure

AU$1,612,817

Compensation

Mr. Stuart Peter Tonkin, BEng(Hons) has been the Chief Executive Officer at Northern Star Resources Limited since November 29, 2016. Mr. Tonkin served as Chief Operating Officer at Northern Star Resources  ...


CEO Compensation Analysis

Compensation vs Market: Stuart's total compensation ($USD1.10M) is below average for companies of similar size in the Australian market ($USD2.28M).

Compensation vs Earnings: Stuart's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.0yrs

Average Tenure

43yo

Average Age

Experienced Management: NST's management team is considered experienced (3 years average tenure).


Board Age and Tenure

3.0yrs

Average Tenure

64yo

Average Age

Experienced Board: NST's board of directors are considered experienced (3 years average tenure).


Insider Trading

Insider Buying: NST insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$198,00025 Oct 19
Christopher George Rowe
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares20,000
Max PriceAU$9.90
BuyAU$50,04203 Oct 19
Mary Hackett
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares4,468
Max PriceAU$11.20
SellAU$265,49222 Aug 19
BlackRock, Inc.
EntityCompany
Shares8,089,850
Max PriceAU$13.41
BuyAU$228,80322 Aug 19
BlackRock, Inc.
EntityCompany
Shares1,305,481
Max PriceAU$13.58
SellAU$3,67429 Jul 19
BlackRock, Inc.
EntityCompany
Shares10,284,798
Max PriceAU$13.87
BuyAU$50,71129 Jul 19
BlackRock, Inc.
EntityCompany
Shares3,697,387
Max PriceAU$13.87
BuyAU$11,112,24724 Jun 19
Van Eck Associates Corporation
EntityCompany
Shares1,252,938
Max PriceAU$9.83
SellAU$4,252,22124 Jun 19
Van Eck Associates Corporation
EntityCompany
Shares483,527
Max PriceAU$10.50
SellAU$43,00812 May 19
BlackRock, Inc.
EntityCompany
Shares10,673,092
Max PriceAU$9.90
BuyAU$012 May 19
BlackRock, Inc.
EntityCompany
Shares11,805,796
Max PriceAU$9.90
SellAU$1,311,13611 Apr 19
The Vanguard Group, Inc.
EntityCompany
Shares147,381
Max PriceAU$9.05
BuyAU$3,880,17211 Apr 19
The Vanguard Group, Inc.
EntityCompany
Shares407,941
Max PriceAU$9.69
SellAU$22,157,21820 Mar 19
William Beament
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares2,460,000
Max PriceAU$9.01
BuyAU$11,646,14419 Mar 19
The Vanguard Group, Inc.
EntityCompany
Shares1,327,410
Max PriceAU$8.98
SellAU$14,269,85019 Mar 19
The Vanguard Group, Inc.
EntityCompany
Shares1,627,638
Max PriceAU$8.79
SellAU$2,684,10807 Mar 19
The Vanguard Group, Inc.
EntityCompany
Shares278,322
Max PriceAU$9.65
BuyAU$3,130,77407 Mar 19
The Vanguard Group, Inc.
EntityCompany
Shares319,987
Max PriceAU$9.91
SellAU$85,565,84305 Mar 19
Van Eck Associates Corporation
EntityCompany
Shares9,666,419
Max PriceAU$9.21
BuyAU$116,599,14705 Mar 19
Van Eck Associates Corporation
EntityCompany
Shares13,182,789
Max PriceAU$8.99
BuyAU$34,59405 Mar 19
Lockheed Martin Corporation Master Retirement Trust
EntityCompany
Shares4,000
Max PriceAU$8.65
SellAU$961,00015 Feb 19
Peter O'Connor
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares100,000
Max PriceAU$9.61
SellAU$1,431,00015 Feb 19
Christopher George Rowe
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares150,000
Max PriceAU$9.54
BuyAU$005 Feb 19
The Vanguard Group, Inc.
EntityCompany
Shares88,653
Max PriceAU$9.40
SellAU$55,05505 Feb 19
The Vanguard Group, Inc.
EntityCompany
Shares95,391
Max PriceAU$9.39
BuyAU$20,816,22213 Jan 19
The Vanguard Group, Inc.
EntityCompany
Shares2,148,217
Max PriceAU$9.69
SellAU$998,86213 Jan 19
The Vanguard Group, Inc.
EntityCompany
Shares107,908
Max PriceAU$9.35
SellAU$9,079,99931 Dec 18
William Beament
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares1,000,000
Max PriceAU$9.08

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5%.


Management Team

  • Mike Mulroney

    Chief Geological Officer

    • Tenure: 4.4yrs
    • Compensation: AU$889.25k
  • Bill Beament (44yo)

    Executive Chairman

    • Tenure: 3yrs
    • Compensation: AU$3.18m
  • Phil Tornatora

    General Manager of Exploration

    • Tenure: 0yrs
  • Darren Stralow (39yo)

    Chief Development Officer

    • Tenure: 0yrs
  • Stuart Tonkin (43yo)

    Chief Executive Officer

    • Tenure: 3yrs
    • Compensation: AU$1.61m
  • Ryan Gurner

    Chief Financial Officer

    • Tenure: 1.1yrs
    • Compensation: AU$443.82k
  • Rebecca Ciotti

    Executive Assistant to Executive Chairman & CEO

    • Tenure: 0yrs
  • Hilary Macdonald

    General Counsel & Company Secretary

    • Tenure: 3.8yrs
    • Compensation: AU$630.39k
  • Luke Creagh

    Chief Operating Officer

    • Tenure: 1yrs
    • Compensation: AU$552.72k
  • Sarah Curnow

    Legal Counsel & Assistant Company Secretary

    • Tenure: 0yrs

Board Members

  • Chris George Rowe (75yo)

    Independent Non-Executive Director

    • Tenure: 16.8yrs
    • Compensation: AU$158.29k
  • John Fitzgerald (57yo)

    Lead Independent Director

    • Tenure: 3yrs
    • Compensation: AU$204.32k
  • Shirley In’t Veld (64yo)

    Independent Non-Executive Director

    • Tenure: 3.2yrs
    • Compensation: AU$174.32k
  • Bill Beament (44yo)

    Executive Chairman

    • Tenure: 3yrs
    • Compensation: AU$3.18m
  • Nick Cernotta

    Independent Non-Executive Director

    • Tenure: 0.3yrs
  • Peter O'Connor (78yo)

    Independent Non-Executive Director

    • Tenure: 7.5yrs
    • Compensation: AU$149.32k
  • Mary Hackett

    Independent Non-Executive Director

    • Tenure: 0.3yrs

Company Information

Northern Star Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Northern Star Resources Limited
  • Ticker: NST
  • Exchange: ASX
  • Founded: 2000
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$5.977b
  • Shares outstanding: 648.94m
  • Website: https://www.nsrltd.com

Number of Employees


Location

  • Northern Star Resources Limited
  • 388 Hay Street
  • Level 1
  • Subiaco
  • Western Australia
  • 6008
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NSTASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2003
NS7DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2003
NESR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2003
NSTCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2003

Biography

Northern Star Resources Limited engages in the exploration, development, mining, processing, and sale of gold deposits in Australia. The company holds interests in the Pogo, Jundee, and Kalgoorlie operatio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 10:33
End of Day Share Price2019/11/14 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.